In this week’s edition of InnovationRx, we look at health policies from the new Administration, Moderna’s fight against the pandemic, Obamacare’s record-breaking numbers and more. To get it in your inbox, subscribe here.
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Oon the first day of his PresidencyDonald Trump announced that he would withdraw the United States from the World Health Organization, a move that drew considerable criticism from public health experts.
The move was one of a slew of executive orders, many of which could have significant impacts on health care — assuming they survive the almost inevitable legal challenges in the courts. The United States provides a significant amount of funding to the WHO, which is tasked with coordinating the international response to health emergencies.
In a statement, WHO said it “regrets the announcement” of the United States’ intended withdrawal and hopes that “the United States will reconsider,” further commenting: “For more than seven decades, WHO and the U.S. have saved countless lives and protected Americans and all people from health threats. Together, we ended smallpox and together we brought polio to the brink of eradication.”
Lawrence Gostin, a professor of public health policy at Georgetown University, called the decision “cataclysmic” in a post on X (formerly Twitter). “Withdrawal is a serious wound to world health, but an even deeper wound to the US,” he wrote.
It is not clear whether the President has the authority to unilaterally withdraw the United States from the organization. It is a treaty member, which makes it the law of the land under the Constitution. A paper authored by several legal policy experts in 2020, when the first Trump administration tried to withdraw from the agency, argued that the President lacks this legal authority to withdraw from the WHO without the express approval of Congress.
Other Trump executive orders included repealing a 2022 Biden executive order to test Medicaid models to lower the price of drugs and orders related to access to Covid-19 vaccines and treatments. Moreover, on Tuesday, Washington Post reported that all communications from the Department of Health and Human Services will be “interrupted” indefinitely.
The pause includes scientific reports, known as the Morbidity and Mortality Weekly Report on public health incidents, data updates on the CDC website and public health data releases from the National Center for Health Statistics. It is not yet clear whether this extends to announcements such as drug approvals or withdrawals.
Moderna receives $590 million to develop vaccines for viruses with pandemic potential
Moderna CEO Stephane Bancel
Getty Images
Lon fridayThe Department of Health and Human Services awarded a $590 million grant to Moderna to develop mRNA-based vaccines against viruses that have pandemic potential. One of those vaccines is against the H5N1 strain of bird flu, which is currently circulating in wild birds and dairy farms. The new grant will also support clinical studies on five other types of pandemic influenza.
The grant, awarded during the final days of the Biden administration, is a continuation of the work the federal government has done with the company to fight pandemics. Moderna developed its Covid-19 vaccine with the help of the first Trump administration’s “Operation Warp Speed” and last June received a $176 million grant for its H5N1 vaccine.
Moderna’s vaccine has already undergone a phase 1/2 study in adults, which included testing vaccines against H5N1 as well as H7 strains, another group of avian flu currently circulating among birds around the world. The company said it is now planning to move into phase 3 trials.
The federal government is working with several other companies on pandemic flu preparations in addition to Moderna. In May, CSL Sequiris received a contract to produce 4.8 million doses of H5N1 vaccines, and in October the Biden administration awarded $72 million to CSL Sequiris, Sanofi and GSK to fill and finish their vaccines into ready-to-use vials and syringes in case immediate distribution is required.
It is an open question how long these programs will continue under the second Trump Administration. On the one hand, Trump has consistently promoted his first administration’s Covid vaccine programs, particularly Operation Warp Speed. On the other hand, his choice to head the Department of Health and Human Services, Robert F. Kennedy, Jr., is against many vaccines and, according to New York Times, he asked the FDA to revoke authorizations of the Covid-19 vaccine during the pandemic.
BIOTECH AND PHARMA
The FDA has approved Datroway, a new treatment for some advanced breast cancers from pharmaceutical companies AstraZeneca and Daiichi Sankyo. Datroway is a conjugated antibody drug that directly targets tumor cells and delivers chemotherapy, which helps reduce side effects. A clinical trial found that the drug significantly increased the time between treatment and cancer progression compared to standard chemotherapy with fewer side effects, although the overall survival rate did not improve. The companies are now studying the drug’s use against other breast cancers and lung cancer.
PUBLIC HEALTH AND HOSPITALS
Last Friday, the outgoing Biden administration announced that 24.2 million Americans had signed up for health insurance coverage under the Affordable Care Act of 2025, surpassing last year’s previous record of 21.3 million. Most of the enrollment growth was in Republican states, including Florida, Texas and Georgia. Whether the next few years will continue to be on record is an open question as President Trump is widely expected to try to repeal the ACA. During his first term, he and Congress tried unsuccessfully to repeal the ACA on several occasions. During the Biden administration, Congress approved increased financial assistance for those seeking coverage, which outgoing CMS Administrator Chiquita Brooks-Lasure credited for record enrollment.
DEAL OF THE WEEK
Umoja Biopharma became the latest clinical-stage biotech startup to raise a megaround. The Seattle-based company announced it had raised $100 million, led by Double Point Ventures and DCVC Bio, to support its work in oncology and autoimmune diseases. The company’s technology aims to induce the body to create its own CAR-T cells to target solid tumors, as opposed to conventional CAR-T therapies where the cells are produced outside the body and administered to patients. Dr. Andrew Scharenberg, who previously co-directed the program in cell and gene therapy at the Seattle Children’s Research Institute, launched Umoja in 2020 with $53 million in funding.
WHAT ARE WE READING
UnitedHealth defends its business after the murder of its executive.
Some types of cancer are becoming more common among young women.
New analysis highlights potential arthritis and pancreatitis risks from GLP-1 drugs.
House Republicans are circulating proposals for trillions in cuts to Medicare, Medicaid and the Affordable Care Act programs.
Neanderthal DNA can affect brain development and cause some forms of mental illness.
The Justice Department is suing Walgreens for allegedly filling millions of illegal prescriptions.